The surplus goods and services, after distributing the minimum necessities, are to be given according to the social value of the individual’s production.

The surplus wealth, after meeting the minimum necessities of the age, will have to be distributed among talented people according to their merit. Motorcars instead of bicycles, for example, should be provided to meritorious people in recognition of their accomplishments to provide them with greater opportunities for social service. ‘Serve according to your capacity and earn according to your necessity’ sound good to the ears, but will reap no harvest in the hard soil of the world.

Ananda Sutram (1962)

Copyright Ananda Marga Publications 2009

Rational Distribution

The tenth of the sixteen principles states: “The surplus goods and services, after distributing the minimum requirements, are to be given according to the social value of the individual’s production.” Note that it is social value rather than economic value. This principle provides a rational basis for material incentives. It is, of course, better for society if moral incentives and the desire for social service motivate people in their productive work. However the practical reality is that labour productivity is, to a large extent, proportional to material rewards.

The need is for a framework that controls such incentives and contains them within such bounds as will best serve the collective interest. The incentives should also be provided in the form of goods and services that can be further applied to social purposes, rather in the form of wealth that is likely to be hoarded. The provision of necessities to all, established by the previous principle, creates an income ‘floor’; this principle creates an income ‘dynamic’; the 12th (first fundamental) principle sets an income ceiling.

From New Aspects of PROUT, by Gary Coyle, Proutist Universal Publications, Denmark 1987

Copyright The author 2011